Bitcoin Price Bears Keep Pushing, Why Drop To $20K Is Still Possible

Bitcoin
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Bitcoin price broke the key $22,000 support zone. BTC is showing bearish signs and might decline further towards $20,500 or even $20,000 in the near term.

  • Bitcoin is gaining bearish momentum below the $22,000 support zone.
  • The price is trading below $22,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $22,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to move down towards the $21,200 support or even $20,500.

Bitcoin Price Extends Drop

Bitcoin price failed to start a recovery wave above the $22,250 resistance zone. BTC bears remained in action and pushed the price further lower below the $22,000 support zone.

It opened the doors for more losses and the price dropped below $21,800. A new monthly low was formed near $21,600 and the price is now consolidating losses. Bitcoin price is now trading below $22,000 and the 100 hourly simple moving average.

An immediate resistance is near the $21,840 level. It is near the 23.6% Fib retracement level of the downward move from the $22,600 swing high to $21,600 low.

The next major resistance is near the $22,000 zone. There is also a major bearish trend line forming with resistance near $22,050 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the downward move from the $22,600 swing high to $21,600 low.

Bitcoin Price Bears Keep Pushing, Why Drop To $20K Is Still Possible0

Source: BTCUSD on TradingView.com

The main resistance is now near the $22,250 zone. A close above the $22,250 resistance might start a decent increase towards the $22,600 resistance zone. The next key resistance is near the $23,000 zone, above which the price might gain bullish momentum.

More Losses in BTC?

If bitcoin price fails to clear the $22,000 resistance and the trend line, it could start another decline. An immediate support on the downside is near the $21,600 zone.

The next major support is near the $21,200 zone, below which the price might drop to $21,000. The next major support is near the $20,500 level. Any more losses might send the price towards the $20,000 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $21,600, followed by $20,500.

Major Resistance Levels – $22,000, $22,050 and $22,250.



Source

Updated: 03/09/2023 — 02:00

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